TEXAS Grant Program Report Fiscal Years 2013 – 2015 June, 2016

Summary of Major Changes Affecting TEXAS Grant The following events had a significant impact on the TEXAS Grant Program:   Statewide changes in the required curriculum for high school graduation (2001) Tuition increases following deregulation of tuition (2004) Legislation phasing out grant eligibility for students attending private or independent four-year institutions (2005) and later, community, state, and technical colleges (2013) Establishment of target award amounts to serve more students (2012) Establishment of the Priority Model eligibility requirements (2013) June, 2016

Priority Model Eligibility Priority Model to Promote Academic Readiness Basic Eligibility Priority Model Eligibility Texas resident   Demonstrate financial need Apply for all available financial aid Not have a baccalaureate degree Enroll at least three-quarter time Register with Selective Service Achieve one of the enrollment pathways (see box to the right) Priority goes to students with an EFC below 60% of average tuition and fees at 4-year public institutions In addition to meeting Basic Eligibility requirements, must meet at least two of the following four criteria: Earn 12 hours of college credit courses (e.g. dual credit, AP); or graduate under the Distinguished Level of Achievement High School Plan or the International Baccalaureate Program. Complete a math course beyond Algebra II Rank in top third of high school graduating class or attain a B average Achieve a college readiness threshold as determined by the Texas Success Initiative June, 2016

Allocations to Public Universities and HRIs 21% Increase in TEXAS Grant Allocations Allocations to Public Universities and HRIs FY 2013 FY 2014 FY 2015 $257,420,002 $302,186,668 $325,021,667 June, 2016

Growth in Hispanic Recipients Outpaces Enrollment Growth TEXAS Grant Recipients – Race/Ethnicity June, 2016

Over 90% of Funding Goes to Students with EFC’s below $4,000 EFC for TEXAS Grant Recipients June, 2016

Priority Model: No Demonstration of Negative Impact on Hispanic or African-American Recipient Rates June, 2016

Priority Model Demonstrates Increased Retention TEXAS Grant Retention - Basic Eligibility Requirements Cohort 1-yr Retention (award #2) 2-yr Retention (award #3) 3-yr Retention (award #4) 4-yr Retention (award #5) 5-yr Retention (award #6) FY 2014 68.1%   FY 2013 66.7% 38.8% FY 2012 65.7% 38.7% 31.5% FY 2011 69.1% 37.1% 30.2% 12.7% FY 2010 70.2% 38.4% 31.0% 12.8% 0.1% TEXAS Grant Retention – Priority Model Cohort Initial number 1-yr retention FY 2015 18,024   FY 2014 17,260 12,382 Retention % 71.7% June, 2016

TEXAS Grant Funding Has Not Kept Pace With Tuition Fiscal Year Avg. Tuition and Fees Average Award Amounts Disbursed Tuition & Fee Average "Shortfall" Per Student % of Avg. Tuition & Fees Covered by Avg. Awards # of Recipients # Recipients Increase/ Decrease 2000 $2,834 $2,315.00 $0 100.0% 6,108 N/A 2001 $2,990 $2,529.00 9,780 37.5% 2002 $3,336 $2,685.00 $651 80.5% 26,982 63.8% 2003 $3,867 $2,827.00 $1,040 73.1% 42,713 36.8% 2004 $4,569 $2,879.00 $1,690 63.0% 40,379 -5.8% 2005 $4,927 $3,301.00 $1,626 67.0% 38,947 -3.7% 2006 $5,425 $3,815.00 $1,610 70.3% 38,823 -0.3% 2007 $5,904 $4,261.00 $1,643 72.2% 34,523 -12.5% 2008 $6,301 $4,737.00 $1,564 75.2% 35,633 3.1% 2009 $6,646 $4,864.00 $1,782 73.2% 39,686 10.2% 2010 $7,012 $5,546.00 $1,466 79.1% 41,828 5.1% 2011 $7,342 $6,182.00 $1,160 84.2% 48,474 13.7% 2012 $7,705 $4,770.00 $2,935 61.9% 53,335 9.1% 2013 $7,902 $4,676.00 $3,226 59.2% 55,880 4.6% 2014 $8,183 $4,906.00 $3,277 60.0% 62,432 10.5% 2015 $8,458 $4,925.00 $3,533 58.2% 66,729 6.4% June, 2016

June, 2016